Breaking tax news for 2013!

IRS just announced the new (and higher) limits on 401(k) plans etc. Here’s a summary for use in 2013 tax planning.

The  inflation-adjustments for 2013 include:

• Gift Tax Exemption:  $14,000 (up $1,000 from 2012)
• Contribution Limit for 401(k)/403(b)/457 Plans:  $17,500 (up $500 from 2012)
• Catch-Up Contribution Limit (Age 50+) for 401(k)/403(b)/457 Plans:  $5,500 (same as 2012)
• Income Limit for Full IRA Deduction:  $59,000 single/$95,000 joint (up $1,000/$3,000 from 2012)
• Income Limit for Full Roth IRA Contribution:  $112,000 single/$178,000 joint (up $2,000/$5,000 from 2012)
• Defined Benefit Plan Annual Benefit Limit:  $205,000 (up $5,000 from 2012)